Growth in PCH helps offset falling business contract hire
Rising demand for personal contract hire is helping to offset declines in business leasing, including business contract hire.
So says the BVRLA as its newly published Q4-2018 Quarterly Leasing Survey shows that the size of the BVRLA business fleet leasing sector reduced by 6.7% year-on-year in Q4-2018, with a 10.9% reduction in the number of cars and an increase of 4.3% in the number of LCVs.
This marked the fourth consecutive quarter that a market decline has been reported with the total BVRLA business leasing fleet size for cars and vans now at 1,254,000.
Personal contract hire rose by 24% year-on-year, partially offsetting the impact of a 10% drop in business contract hire during the same period. PCH now represents 25% of the BVRLA car fleet.
BVRLA chief executive Gerry Keaney commented: “This backs up the findings of our recent Industry Outlook Report which said that BVRLA members were adapting to the prevailing business conditions, finding new customers and routes to market.”
The survey also showed further evidence of a substantial shift in fuel type as new registrations of petrol cars overtook diesel for the first time. This change in fuel mix – likely the result of the growth in PCH drivers – is also combining with the introduction of WLTP-tested vehicles to drive an increase in CO2 emissions. Average emissions for the BVRLA member car fleet have risen to 113.2g/km CO2, while for new registrations it has jumped to 118g/km.
“This continuing rise in average emissions is the price we are paying for diesel demonization and the government’s misaligned and contradictory taxation and environmental policies,” said Keaney.
“It is vital that the fleet industry continues to work together in urging the chancellor to provide a company car tax regime that is fit-for-purpose and incentivises the uptake of cleaner vehicles.”